O-I Announces Progress on its Tactical Divestiture Program
December 19 2019 - 4:45PM
Owens-Illinois, Inc. (“O-I” or the “Company”) today announced the
sale of its 25 percent partnership interest in Tata Chemicals (Soda
Ash) Partners Holdings, one of the world's leading producers of
high-quality soda ash, to Valley Holdings, Inc., a wholly-owned
subsidiary of Tata Chemicals Limited.
This sale generated $195 million of cash
proceeds which will be used to repay outstanding debt prior to
year-end 2019. For the twelve month period ended September 30,
2019, O-I’s equity earnings included $19 million attributable to
its minority interest in Tata Chemicals (Soda Ash) Partners
Holdings.
This asset sale is one component of the
Company’s on-going tactical divestiture program targeting total
proceeds of between $400 and $500 million. O-I continues to advance
both its tactical divestiture and strategic portfolio review
initiatives with additional asset sales expected in 2020.
About O-I At Owens-Illinois, Inc. (NYSE: OI),
we love glass and we’re proud to make more of it than any other
glass bottle or jar producer in the world. We love that it’s
beautiful, pure and completely recyclable. With global headquarters
in Perrysburg, Ohio, we are the preferred partner for many of the
world's leading food and beverage brands. Working hand and hand
with our customers, we give our passion and expertise to make their
bottles iconic and help build their brands around the world. With
more than 26,500 people at 78 plants in 23 countries, O-I has a
global impact, achieving revenues of $6.9 billion in 2018. For more
information, visit o-i.com.
Forward-Looking Statements This press release
contains “forward-looking” statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and Section 27A of the Securities Act of 1933.
These forward-looking statements relate to a variety of matters,
including, without limitation, statements regarding the approval,
consummation and potential impact of the Corporate Modernization.
Forward-looking statements reflect the Company’s current
expectations and projections about future events at the time, and
thus involve uncertainty and risk. The words “believe,” “expect,”
“anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,”
“estimate,” “intend,” “predict,” “potential,” “continue,” and the
negatives of these words and other similar expressions generally
identify forward-looking statements.
It is possible that the Company’s future financial performance
may differ from expectations due to a variety of factors including,
but not limited to the following: (1) the anticipated timing of the
implementation and consummation of the Corporate Modernization, (2)
the potential impact of the Corporate Modernization on the
Company’s branding and business, (3) the potential costs of the
Corporate Modernization, (4) the Company’s ability to manage its
cost structure, including its success in implementing restructuring
or other plans aimed at improving the Company’s operating
efficiency and working capital management, achieving cost savings,
and remaining well-positioned to address the Company’s legacy
liabilities, (5) the Company’s ability to acquire or divest
businesses, acquire and expand plants, integrate operations of
acquired businesses and achieve expected benefits from
acquisitions, divestitures or expansions, (6) the Company’s ability
to achieve its strategic plan, (7) foreign currency fluctuations
relative to the U.S. dollar, (8) changes in capital availability or
cost, including interest rate fluctuations and the ability of the
Company to refinance debt at favorable terms, (9) the general
political, economic and competitive conditions in markets and
countries where the Company has operations, including uncertainties
related to Brexit, economic and social conditions, disruptions in
the supply chain, competitive pricing pressures, inflation or
deflation, and changes in tax rates and laws, (10) the Company’s
ability to generate sufficient future cash flows to ensure the
Company’s goodwill is not impaired, (11) consumer preferences for
alternative forms of packaging, (12) cost and availability of raw
materials, labor, energy and transportation, (13) consolidation
among competitors and customers, (14) unanticipated expenditures
with respect to data privacy, environmental, safety and health
laws, (15) unanticipated operational disruptions, including higher
capital spending, (16) the Company’s ability to further develop its
sales, marketing and product development capabilities, (17) the
failure of the Company’s joint venture partners to meet their
obligations or commit additional capital to the joint venture, (18)
the ability of the Company and the third parties on which it relies
for information technology system support to prevent and detect
security breaches related to cybersecurity and data privacy, (19)
changes in U.S. trade policies, and the other risk factors
discussed in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2018 and any subsequently filed Quarterly
Reports on Form 10-Q or the Company’s other filings with the
Securities and Exchange Commission.
Chris Manuel
Vice President, Investor Relations
567-336-2600
chris.manuel@o-i.com
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